Netgear 2011 Annual Report Download - page 16

Table of Contents
As a result, period-to-
period comparisons of our operating results may not be meaningful, and you should not rely on them as an indication
of our future performance.
12
•
operational disruptions, such as transportation delays or failure of our order processing system, particularly if they occur at the end of
a fiscal quarter;
• geopolitical disruption leading to delay or even stoppage of our operations in manufacturing, transportation, technical support and
research and development;
•
delay or failure of our service provider customers to purchase at the volumes that they forecast;
•
foreign currency exchange rate fluctuations in the jurisdictions where we transact sales and expenditures in local currency;
• changes in or consolidation of our sales channels and wholesale distributor relationships or failure to manage our sales channel
inventory and warehousing requirements;
•
delay or failure to fulfill orders for our products on a timely basis;
• allowance for bad debts exposure with our existing customers and new customers, particularly as we expand into new international
markets;
•
disruptions or delays related to our financial and enterprise resource planning systems;
•
our inability to accurately forecast product demand;
•
component supply constraints from our vendors;
•
unfavorable level of inventory and turns;
•
unanticipated shift in overall product mix from higher to lower margin products that would adversely impact our margins;
•
terms of our contracts with customers or suppliers that cause us to incur additional expenses or assume additional liabilities;
•
the inability to maintain stable operations by our suppliers and other parties with which we have commercial relationships;
•
delays in the introduction of new products by us or market acceptance of these products;
•
an increase in price protection claims, redemptions of marketing rebates, product warranty and stock rotation returns or allowance for
doubtful accounts;
•
litigation involving patent infringement;
•
epidemic or widespread product failure, or unanticipated safety issues, in one or more of our products;
•
challenges associated with integrating acquisitions that we make, or with realizing value from our strategic investments in other
companies;
• failure to effectively manage our third party customer support partners which may result in customer complaints and/or harm to the
NETGEAR brand;
• our inability to monitor and ensure compliance with our anti-corruption compliance program and domestic and international anti-
corruption laws and regulations, whether in relation to our employees or with our suppliers or customers;
•
labor unrest at facilities managed by our third
-
party manufacturers;
•
unanticipated increase in costs, including air freight, associated with shipping and delivery of our products;
•
our failure to implement and maintain the appropriate internal controls over financial reporting which may result in restatements of
our financial statements; and
•
any changes in accounting rules.